Money and Banks

An economic depression is not caused by a decline in the money supply per se, but results from a shrinking pool of savings made possible by a previous bout of monetary inflation.

Some fed officials simply shrugged off what was an obvious conflict of interest when they traded stocks and real estate holdings while making policy. The rules don't apply to central bankers.

Without establishing the underlying causes of boom-bust cycles, employing policies in response to changes in economic indicators to counter economic cycles is likely to destabilize the economy.

As Japan did, the eurozone is betting all on government spending, stimulus packages, and massive debt monetization. In other words, there is no real economic recovery in sight. 

The Fed’s apparent plan to somehow get to full employment and then deal with inflation sounds nice, but reality could easily derail the plan. Meanwhile, job growth is low and prices are rising.

Some fed officials simply shrugged off what was an obvious conflict of interest when they traded stocks and real estate holdings while making policy. The rules don't apply to central bankers.

Petrou's new book on monetary policy details how the Fed's turn toward QE and ultralow interest rates have done wonders for billionaires while impoverishing millions of ordinary people. 

Without establishing the underlying causes of boom-bust cycles, employing policies in response to changes in economic indicators to counter economic cycles is likely to destabilize the economy.

MMT is a pseudoreligious conviction that anything is possible and that the one and only solution is always Glorious Government.

The Fed’s apparent plan to somehow get to full employment and then deal with inflation sounds nice, but reality could easily derail the plan. Meanwhile, job growth is low and prices are rising.